A bigger than expected drop in US consumer confidence pushed the dollar higher against the euro on Tuesday.

The Conference Board's Consumer Confidence index for July fell to 50.4 from a revised 54.3 in June. Job concerns are hitting confidence and creating concerns about the economic recovery.

The euro slipped back under $1.30 as appetite for riskier currencies waned. Concern about US growth sent the dollar index, which measures the US currency against a basket of six others, to 82.200 from 82.017 the previous session.

The euro had rallied to an 11 week high against the greenback in the previous session after the results of the stress test but by Tuesday focus turned to the strength of the US recovery. The euro fell to $1.2989 from $1.2999 late Monday. The dollar rose to 87.82 yen from 86.90 yen.

Sterling held onto gains against the dollar after figures from the Confederation of British Industry showed high street sales rose more than expected in July, at their quickest pace in over three years, and retailers expect more of the same next month.

Sterling rose to $1.5575 from $1.5490 on Monday.

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